Exploding The Money Myths In Business

It’s a double-edged sword isn’t it? You start your business with the intention of making so much money that it’ll change your life …

Then … clients don’t flock to your doors, sales are not as you expected and people don’t want to pay you what you’re really worth.

Been there?

Time to explode these money myths:

Myth No.1

There’s A Ceiling On What You Can Charge

This is a biggie! You set a ceiling on what you think people will pay based what others’ are charging for a similar service. Big mistake.

Yes, there might be a limit on the price you can ask for in some industries such as a supermarket, but in most businesses that’s not the case.

Research shows that almost 95% of people do NOT buy on price. They buy on ‘value’ and what ‘it will do for them’. If people are quibbling about your prices then you aren’t charging enough and/or you’re not finding the right people.

Myth No.2

I Need To Discount To Get Business

People like bargains and offering a discount to clench the business is often the way it goes. However, selling yourself down the river just to get the job isn’t good. If someone is trying to pin you to the floor over price (and who hasn’t been there at some point?) don’t offer a discount. Offer a value based incentive instead.

Myth No. 3

It’s Morally Wrong To Set High Prices

“I can’t charge that much! How can I expect people to pay me that?” When I hear this it’s often from people who are either struggling or have not yet established what they’re really in business for.

The problem is that if you don’t set higher priced options for people then you will continue to struggle. It has nothing to do with the money you are asking. It is however to do with the value you place on yourself and your product or service.

You have huge personal value in your past experience and the money, time and effort you’ve already invested in your own personal development. Don’t under value that.

No-one else has your experience … only you. Anyone who sets a high price knows who they truly are, the value they place on what they have to offer and their true self-worth. This is reflected in their pricing. You need to do the same.

Myth No. 4

I Can Lose Money In Business

Yes you can … but only if you didn’t learn the lesson. Money in business is never lost unless you choose it to be so. Let me explain. Every successful entrepreneur will have a host of bad mistakes which have cost them money.

It’s how you deal with it that makes the difference. What you need to do is to look for ‘the lesson’ that the lost money opportunity gave you. What is it that you can learn from the experience? There’s true value in that.

Myth No. 5

People I Work With Can’t Afford To Pay Me More

If you’re in this situation I’ve got to say that money or lack of it, really isn’t the issue. This is a mind-set problem. Those same people who can’t afford to pay you more all have a choice in how they spend however money they do have. In doing so, they will still buy whatever it is they want to buy whether that’s essentials or other indulgences such as smoking, drinking or eating out.

Money is simply an exchange for something of value that you want to receive. If your customers’ perceived value is higher than the money you’re asking them for, then people will be happy to make an exchange.

Myth No. 6

I Can’t Afford To Pay Myself A Huge Salary … Or One At All!

Depending on where you are with your business will of course dictate the amount of money available for paying yourself. However, I see this mistake happening a lot with new businesses or those who haven’t been trading for very long. And it’s that the owner priorities everything else before they pay themselves.

What happens is that there is no money or very little money left for the business owner. Can you relate to that? When this happens it’s likely you will continue to be the last person to get paid, if at all. That’s not good.

I suggest that right from the start you pay yourself a regular amount each month and keep to that regardless of any fluctuations in business. Give yourself a pay rise and a bonus each year too.– no matter how small that is. This conditions your mind to receiving money and expecting money from your business. In doing so you will subconsciously be attracting money into your business. If you don’t believe me … try it!

Myth No. 7

It’s Not The Right Time to Invest

Whether it’s to upgrade equipment, go on a course, or pay someone else for their expertise, it’s a decision that takes money. Do you struggle on and try to do it by yourself in the belief that you’re saving money? Do you work with a friend who might know something you don’t? Or do you invest in someone who’s expensive but an expert?

Reality is that it costs you more in time and energy doing something you’re not good at or working with someone who doesn’t know enough of what you need to know. That’s expensive!

How do you know when it’s the right time to invest in someone else’s services to get your business to the next level? I find this quite easy … it’s the time the problem arises and becomes a block if you let it.

The knowledge, the expertise, the know-how is already there. You just need to make the decision first and the ‘how to find the money’ will eventually make an appearance.